The parent group of independent department store retailer Trago Mills has reported a growth in turnover as sales edged closer to £90m.

According to its latest filed accounts for the year ended 31 December 2023, total sales rose 6.6% to £88.6m from £83.1m in 2022.

Pre-tax losses resulted at £2.8m compared to its loss of £1.5m recorded the previous year.

Stated within its report, the company said: “The retail sector continues to be a very tough environment and whilst the board were pleased to improve gross margins during the year, the growth in turnover was outstripped by the inflationary pressures on running costs, wage and energy inflation being the largest drivers of cost increase.

“The losses incurred in recent times have impacted on cash reserves and the board have carefully reviewed current and future funding requirements whist a business turnaround is completed. The outcome of this review is that various non-core activities will be divested to allow better focus and freeing of funds currently invested. The first result of this plan resulted in sales of investment properties in August 2024, generating nearly £2.1m of proceeds.”

Within the group of four department stores in south Cornwall, south Devon in England, and south Wales, Trago Mills Ltd reported sales of £22.2m, up 5.2% from £21.1m over the period. Pre-tax losses resulted at £363,000, down from a profit of £1.1m.

Meanwhile, Trago Millis (Falmouth) saw sales rise 8.4% to £7.7m from £7.1m, while pre-tax losses resulted at £463,000, widening from a loss of £112,000. Trago Mills (Merthyr) also saw sales grow by 9.9% to £18.8m from £17.1m. Pre-tax losses widened from £1.7m to £2.1m.

As for Trago Mills (South Devon), its largest division, total sales rose 4.6% to £44.9m from £42.9m, with pre-tax losses amounting to £825,000, widening from its loss of £321,000.